Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company [ X ]

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]

Item 2.02. Results of Operations and Financial Condition.

On April 26, 2018, the Registrant issued a press release, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

Item 7.01. Regulation FD Disclosure.

Luther Burbank Corporation (the “Company”) will conduct a conference call at 10:00 a.m. (Pacific Time) on April 27, 2018 to discuss its financial results for the first quarter ending March 31, 2017. A copy of the presentation to be used for the conference call and future investor presentations is furnished as Exhibit 99.2 to this Report and is incorporated herein by reference.

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Luther Burbank Corporation

Dated: April 26, 2018

By:

/s/ Laura Tarantino

Laura Tarantino

Executive Vice President and Chief Financial Officer

EdgarFiling

EXHIBIT 99.1

Luther Burbank Corporation Reports 2018 First Quarter Earnings Per Common Share of $0.20

Quarterly Cash Dividend of $0.0575 Per Common Share Declared

SANTA ROSA, Calif., April 26, 2018 (GLOBE NEWSWIRE) -- Luther Burbank Corporation (NASDAQ:LBC) (the “Company”), the holding company for Luther Burbank Savings (the “Bank”), today reported net income available to common shareholders of $11.1 million, or $0.20 diluted earnings per common share (“EPS”), for the quarter ended March 31, 2018, compared to net income available to common shareholders of $12.3 million, or $0.29 EPS, for the quarter ended March 31, 2017. Pre-tax, pre-provision earnings and pro-forma EPS for the quarter ended March 31, 2018 were $16.8 million and $0.20, respectively, compared to $13.0 million and $0.18, respectively, for the same period last year.

Pre-tax, pre-provision earnings and pro-forma EPS, both non-GAAP financial measures, are presented because management believes these financial metrics provide stockholders with useful information for evaluating the profitability of the Company. In addition, management believes it enhances the comparability of the Company’s financial results by eliminating the
tax differences associated with the Company’s change in tax status from an S-corporation to a C-corporation. The Company revoked its S-corporation status in December 2017. A schedule reconciling our GAAP net income to pre-tax, pre-provision earnings and pro-forma EPS are provided in the tables below.

John G. Biggs, President and Chief Executive Officer, stated, “We are extremely pleased with our results in the first quarter after a successful initial public offering in December 2017. For the first time in our history, we’ve exceeded $6 billion in total assets fueled by strong growth in our loan and deposit portfolios. In addition to our 6% growth in assets since year-end 2017, net interest income increased by over 13% compared to the same period last year and our efficiency ratio improved to 47%, which is one of the best efficiency ratios amongst our industry peers.”

Mr. Biggs continued, “Looking forward, I’m excited for the opening of our new branch in Bellevue, WA in mid-2018, as well as the recent announcement regarding the expansion of our construction lending operations. These initiatives will further support our growth and financial objectives and will continue our expansion into key strategic markets.”

Board Declares Quarterly Cash Dividend of $0.0575 Per Share

On April 26, 2018, the Board of Directors of the Company declared a quarterly cash dividend of $0.0575 per common share. The dividend is payable on May 17, 2018 to shareholders of record as of May 7, 2018.

First Quarter Earnings Summary

Net interest income for the quarter ended March 31, 2018 totaled $30.5 million compared to $27.6 million for the previous quarter and $26.9 million for the same period last year. The increase in net interest income was primarily related to growth in the average balance of our loans outstanding compared to the previous quarter and the same period last year. Net interest margin for the quarter ended March 31, 2018 was 2.11%, compared to 2.05% for the previous quarter and 2.10% for the 2017 first quarter.

Noninterest Income

Noninterest income for the quarter ended March 31, 2018 totaled $1.0 million, compared to $1.5 million for the previous quarter and $882 thousand for the 2017 first quarter. The reduction of $469 thousand in noninterest income, or 31.4%, for the quarter ended March 31, 2018 compared to the linked quarter ended December 31, 2017, was attributable to a decrease of $341 thousand in other fee income related to mortgage servicing rights amortization. The increase of $143 thousand in noninterest income, or 16.2%, for the quarter ended March 31, 2018 compared to the quarter ended March 31, 2017, was primarily attributable to fair value losses incurred in connection with the discontinuation of our retail mortgage operations during the first quarter of 2017.

Noninterest Expense

Noninterest expense for the quarter ended March 31, 2018 totaled $14.7 million compared to $13.2 million for the previous quarter and $14.7 million for the 2017 first quarter. The increase of $1.5 million, or 11.3%, for the quarter ended March 31, 2018 compared to the linked quarter ended December 31, 2017, was primarily attributable to an increase of $1.5 million in compensation and related benefits.

Balance Sheet Summary

Total assets at March 31, 2018 were $6.0 billion, an increase of $329.5 million from December 31, 2017. The increase was primarily due to a $284.9 million increase in loans and a $35.2 million increase in available for sale investment securities.

Loans

The multifamily residential (“MFR”) mortgage loan portfolio totaled $3.1 billion at March 31, 2018 compared to $2.9 billion at December 31, 2017 and represents 58.1% of the total loan portfolio. The yield on the MFR portfolio was 3.72% during the three months ended March 31, 2018, compared to 3.65% during the previous quarter and 3.45% during the same period last year. For the quarter ended March 31, 2018, MFR loan originations and the corresponding weighted average coupon totaled $241.8 million and 4.29%, respectively, compared to $410.2 million and 3.87%, respectively, for the same period last year. MFR loan originations were higher during the same period last year due to anticipated loan sales during 2017. Prepayment speeds within the MFR loan portfolio were 4.6% and 15.7% during the quarters ended March 31, 2018 and 2017, respectively.

The single family residential mortgage loan portfolio totaled $2.1 billion at March 31, 2018 and December 31, 2017 and represents 38.9% of the total loan portfolio. The yield on the SFR portfolio was 3.35% during the three months ended March 31, 2018, compared to 3.29% during the previous quarter and 3.22% during the same period last year. For the quarter ended March 31, 2018, residential loan originations and the corresponding weighted average coupon totaled $215.2 million and 4.29%, respectively, compared to $123.9 million and 3.96%, respectively, for the same period last year. The fluctuation in SFR originations was primarily attributable to an increase in customer demand experienced during the current quarter compared to the same period last year. Prepayment speeds within the SFR loan portfolio were 21.3% and 24.3% during the quarters ended March 31, 2018 and 2017, respectively.

Deposits

Deposits totaled $4.1 billion at March 31, 2018, an increase of $162.8 million from December 31, 2017. Retail deposits represented 89% of the growth, or $145.3 million, while wholesale deposits represented 11%, or $17.4 million. Our cost of deposits was 1.19% during the quarter ended March 31, 2018 compared to 1.15% during the prior quarter and 0.96% during the same period last year. The change in our cost of deposits was primarily related to increases in our time deposit portfolio, which rate increased to 1.44% during the current period due to competitive pressures.

Capital

Stockholders’ equity totaled $553.8 million, or 9.2% of total assets at March 31, 2018, an increase of $4.0 million from December 31, 2017, or an increase of 0.7%. Both the Bank’s and the Company’s capital levels continue to be significantly above the minimum levels required to be designated as “well-capitalized” for bank regulatory purposes. At March 31, 2018, Tier 1 leverage, Common Equity Tier 1 risk based, Tier 1 risk-based and Total risk-based capital ratios were 11.90%, 19.44%, 19.44% and 20.39%, respectively for the Bank, and 10.57%, 15.55%, 17.27% and 18.22%, respectively for the Company. At March 31, 2018, the Company’s tangible stockholders' equity ratio was 9.13%.

Asset Quality

Non-performing loans, totaled $7.0 million, or 0.13% of total loans, at March 31, 2018, compared to $7.0 million, or 0.14% of total loans, at December 31, 2017. There was not any real estate owned at March 31, 2018 or December 31, 2017. For the quarter ended March 31, 2018, a $1.5 million loan loss provision was recorded compared to a $1.3 million provision in the prior quarter and a $309 thousand provision recorded in the first quarter of 2017.

About Luther Burbank Corporation

Luther Burbank Corporation is a publicly owned company traded on the NASDAQ Capital Market under the symbol “LBC.” The Company is headquartered in Santa Rosa, California with total assets of $6.0 billion, total loans of $5.3 billion and total deposits of $4.1 billion as of March 31, 2018. It operates primarily through its wholly-owned subsidiary, Luther Burbank Savings, an FDIC insured, California-chartered bank. Luther Burbank Savings executes on its mission to improve the financial future of customers, employees and shareholders by providing personal banking and business banking services. It offers consumers a host of highly competitive depository and mortgage products coupled with personalized attention. Business customers benefit from boutique-quality service along with access to products which meet their unique financial needs from the convenience of online and mobile banking, robust cash management solutions, and high-yield liquidity management products to multifamily and commercial lending. Currently operating in California, Oregon and Washington, from nine branches in California and nine lending offices located throughout the market area, Luther Burbank Savings is an equal housing lender. For additional information, please visit lutherburbanksavings.com.

Cautionary Statements Regarding Forward-Looking Information

This communication contains a number of forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views with respect to, among other things, future events and our results of operations, financial condition and financial performance. All statements contained in this communication that are not clearly historical in nature are forward-looking, and the words such as "anticipate," "believe," “continue,” "could," "estimate," "expect," “impact,” "intend," "seek," "may," "outlook," "plan," "potential," "predict," "project," "should," "will," "would" and similar terms and phrases are generally intended to identify forward-looking statements. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. Such factors include, without limitation, the “Risk Factors” referenced in our Registration Statement on Form S-1 filed with the Securities and Exchange Commission (“SEC”). The risks and uncertainties listed from time to time in our reports and documents filed with the SEC, and the following factors: business and economic conditions generally and in the financial services industry, nationally and within our current and future geographic market areas; economic, market, operational, liquidity, credit and interest rate risks associated with our business; the occurrence of significant natural or man-made disasters, including fires, earthquakes, and terrorist acts; our management of risks inherent in our real estate loan portfolio, and the risk of a prolonged downturn in the real estate market; our ability to achieve organic loan and deposit growth and the composition of such growth; the fiscal position of the U.S federal government and the soundness of other financial institutions; changes in consumer spending and savings habits; technological and social media changes; the laws and regulations applicable to our business; increased competition in the financial services industry; changes in the level of our nonperforming assets and charge-offs; our involvement from time to time in legal proceedings and examination and remedial actions by regulators; the composition of our management team and our ability to attract and retain key personnel; material weaknesses in our internal control over financial reporting; systems failures or interruptions involving our information technology and telecommunications systems; and potential exposure to fraud, negligence, computer theft and cyber-crime. The Company can give no assurance that any goal or expectation set forth in forward-looking statements can be achieved and readers are cautioned not to place undue reliance on such statements. These forward-looking statements are made as of the date of this communication, and the Company does not intend, and assumes no obligation, to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events or circumstances, except as required by law.

About Non-GAAP Financial Measures

Certain of the financial measures and ratios we present, including “pre-tax, pre-provision net earnings,” “efficiency ratio,” “return on average tangible equity,” “proforma net income,” “proforma ratios,” "net tangible book value per share," “tangible assets,” “tangible stockholders’ equity” and “tangible stockholders’ equity to tangible assets,” are supplemental measures that are not required by, or are not presented in accordance with, U.S. generally accepted accounting principles (GAAP). We refer to these financial measures and ratios as “non-GAAP financial measures.” We consider the use of select non-GAAP financial measures and ratios to be useful for financial and operational decision making and useful in evaluating period-to-period comparisons. We believe that management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, analyzing and comparing past, present and future periods.

These non-GAAP financial measures should not be considered a substitute for financial information presented in accordance with GAAP and you should not rely on non-GAAP financial measures alone as measures of our performance. The non-GAAP financial measures we present may differ from non-GAAP financial measures used by our peers or other companies. We compensate for these limitations by providing the equivalent GAAP measures whenever we present the non-GAAP financial measures and by including a reconciliation of the impact of the components adjusted for in the non-GAAP financial measure so that both measures and the individual components may be considered when analyzing our performance. A reconciliation of non-GAAP financial measures to the comparable GAAP financial measures is included at the end of the financial statement tables.

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)

March 31, 2018 (unaudited)

March 31, 2017 (unaudited)

December 31, 2017

ASSETS

Cash and cash equivalents

$

74,421

$

75,719

$

75,578

Available for sale investment securities, at fair value

538,440

466,564

503,288

Held to maturity investment securities, at amortized cost

12,237

7,267

6,921

Loans held-for-sale

—

47,844

—

Loans held-for-investment

5,326,409

4,729,359

5,041,547

Allowance for loan losses

(31,980

)

(33,699

)

(30,312

)

Accrued interest receivable

16,137

13,174

14,901

Federal Home Loan Bank stock

33,023

32,910

27,733

Premises and equipment, net

21,862

23,785

22,452

Goodwill

3,297

3,297

3,297

Prepaid expenses and other assets

40,042

25,320

38,975

Total assets

$

6,033,888

$

5,391,540

$

5,704,380

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities:

Deposits

$

4,114,026

$

3,620,642

$

3,951,238

Federal Home Loan Bank advances

1,158,153

1,157,480

989,260

Junior subordinated deferrable interest debentures

61,857

61,857

61,857

Senior debt

94,195

94,061

94,161

Accrued interest payable

2,329

1,398

1,781

Other liabilities and accrued expenses

49,577

48,595

56,338

Total liabilities

5,480,137

4,984,033

5,154,635

Stockholders' equity:

Common stock, no par value; 100,000,000 shares authorized; 56,561,055 and 56,422,662 shares issued and outstanding at March 31, 2018 and December 31, 2017, respectively

455,251

2,262

454,287

Retained earnings

105,750

410,143

102,459

Accumulated other comprehensive loss, net of taxes

(7,250

)

(4,898

)

(7,001

)

Total stockholders' equity

553,751

407,507

549,745

Total liabilities and stockholders' equity

$

6,033,888

$

5,391,540

$

5,704,380

CONSOLIDATED INCOME STATEMENTS (UNAUDITED)

(Dollars in thousands except per share data)

For the Three Months Ended

March 31, 2018

March 31, 2017

December 31, 2017

Interest income:

Interest and fees on loans

$

46,563

$

38,743

$

42,477

Interest and dividends on investment securities

2,718

1,653

2,146

Total interest income

49,281

40,396

44,623

Interest expense:

Interest on deposits

11,932

8,314

11,285

Interest on FHLB advances

4,820

3,275

3,760

Interest on junior subordinated deferrable interest debentures

487

380

447

Interest on senior debt

1,577

1,577

1,577

Total interest expense

18,816

13,546

17,069

Net interest income before provision for loan losses

30,465

26,850

27,554

Provision for loan losses

1,500

309

1,250

Net interest income after provision for loan losses

28,965

26,541

26,304

Noninterest income:

Increase in cash surrender value of life insurance

53

49

48

Net loss on sale of loans

—

(163

)

—

FHLB dividends

594

633

696

Other income

378

363

750

Total noninterest income

1,025

882

1,494

Noninterest expense:

Compensation and related benefits

9,619

10,197

8,140

Deposit insurance premium

432

398

404

Professional and regulatory fees

398

185

582

Occupancy

1,296

1,298

1,295

Depreciation and amortization

714

735

724

Data processing

788

790

789

Marketing

213

179

298

Other expenses

1,253

921

989

Total noninterest expense

14,713

14,703

13,221

Income before provision for income taxes

15,277

12,720

14,577

Provision for income taxes

4,175

425

(5,844

)

Net income

$

11,102

$

12,295

$

20,421

Basic earnings per common share

$

0.20

$

0.29

$

0.45

Diluted earnings per common share

$

0.20

$

0.29

$

0.45

Weighted average common shares outstanding - basic

56,190,970

42,000,000

45,667,516

Weighted average common shares outstanding - diluted

56,755,154

42,000,000

45,831,743

CONSOLIDATED FINANCIAL HIGHLIGHTS (UNAUDITED)

(Dollars in thousands except per share data)

As of or For the Three Months Ended

March 31, 2018

March 31, 2017

December 31, 2017

PERFORMANCE RATIOS

Return on average:

Assets

0.76

%

0.95

%

1.50

%

Stockholders' equity

7.98

%

12.01

%

17.97

%

Tangible stockholders' equity

8.03

%

12.11

%

18.10

%

Efficiency ratio

46.72

%

53.02

%

45.51

%

Noninterest expense to average assets

1.01

%

1.14

%

0.97

%

Loans to deposit ratio

129.47

%

131.94

%

127.59

%

Average stockholders' equity to average assets

9.52

%

7.92

%

8.32

%

Dividend payout ratio

54.59

%

79.71

%

230.64

%

PRO FORMA (1)

Pro forma net income

$

11,102

$

7,378

$

8,455

Pro forma diluted earnings per share

$

0.20

$

0.18

$

0.18

Pro forma return on average:

Assets

0.76

%

0.57

%

0.62

%

Stockholders' equity

7.98

%

7.21

%

7.44

%

Tangible stockholders' equity

8.03

%

7.27

%

7.49

%

YIELDS/ RATES

Yield on loans

3.61

%

3.38

%

3.53

%

Yield on investments

1.85

%

1.32

%

1.57

%

Yield on interest earning assets

3.42

%

3.16

%

3.31

%

Cost of deposits

1.19

%

0.96

%

1.15

%

Cost of borrowings

2.25

%

1.69

%

2.25

%

Cost of interest bearing liabilities

1.44

%

1.15

%

1.38

%

Net interest spread

1.98

%

2.01

%

1.93

%

Net interest margin

2.11

%

2.10

%

2.05

%

CAPITAL

Total equity to total assets

9.18

%

7.56

%

9.64

%

Tangible stockholders' equity to tangible assets

9.13

%

7.50

%

9.58

%

Book value per share

$

9.79

$

9.70

$

9.74

Tangible book value per share

$

9.73

$

9.62

$

9.68

Market value per share (period end)

$

12.01

N/A

$

12.04

AVERAGE BALANCES

Loans and loans held for sale

$

5,165,366

$

4,578,372

$

4,818,654

Earning assets

$

5,770,070

$

5,111,903

$

5,386,380

Total assets

$

5,848,751

$

5,172,186

$

5,461,226

Deposits

$

4,007,106

$

3,467,449

$

3,914,149

Total equity

$

556,661

$

409,451

$

454,635

Tangible equity

$

553,364

$

406,154

$

451,338

(1) See "Non-GAAP Reconciliation" table for reconciliation of Pro Forma Net Income and Ratios

CONSOLIDATED FINANCIAL HIGHLIGHTS (UNAUDITED)

(Dollars in thousands)

As of or For the Three Months Ended

March 31, 2018

March 31, 2017

December 31, 2017

ASSET QUALITY

Net recoveries

$

168

$

92

$

78

Nonperforming loans

$

6,961

$

4,315

$

7,037

Nonperforming assets

$

6,961

$

4,315

$

7,037

Allowance for loan losses

$

31,980

$

33,699

$

30,312

Annualized net recoveries to average loans

0.01

%

0.01

%

0.01

%

Nonperforming loans to total loans

0.13

%

0.09

%

0.14

%

Nonperforming assets to total assets

0.12

%

0.08

%

0.12

%

Allowance for loan losses to loans held-for-investment

0.60

%

0.71

%

0.60

%

Allowance for loan losses to nonperforming loans

459.42

%

780.97

%

430.75

%

LOAN COMPOSITION

Multifamily residential

$

3,094,033

$

2,908,147

$

2,903,947

Single family residential

$

2,069,950

$

1,756,633

$

1,983,384

Commercial real estate

$

125,756

$

69,843

$

112,711

Construction and land

$

36,570

$

42,530

$

41,455

Non-mortgage

$

100

$

50

$

50

DEPOSIT COMPOSITION

Non-interest bearing transaction accounts

$

28,843

$

14,490

$

30,899

Interest bearing transaction accounts

$

196,767

$

197,729

$

203,159

Money market deposit accounts

$

1,489,718

$

1,571,721

$

1,474,498

Time deposits

$

2,398,698

$

1,836,702

$

2,242,682

AVERAGE BALANCE SHEET AND NET INTEREST ANALYSIS (UNAUDITED)

(Dollars in thousands)

For the Three Months Ended March 31,

2018

2017

Average Balance

Interest Inc / Exp

Average Yield/Rate

Average Balance

Interest Inc / Exp

Average Yield/Rate

Interest-Earning Assets

Multifamily residential

$

3,000,059

$

27,930

3.72

%

$

2,724,910

$

23,490

3.45

%

Single family residential

2,009,329

16,806

3.35

%

1,755,119

14,118

3.22

%

Commercial

117,559

1,463

4.98

%

60,953

784

5.14

%

Construction, land and NM

38,419

364

3.79

%

37,390

351

3.76

%

Total Loans (1)

5,165,366

46,563

3.61

%

4,578,372

38,743

3.38

%

Securities available-for-sale

524,119

2,383

1.82

%

455,096

1,465

1.29

%

Securities held-to-maturity (2)

10,544

89

3.38

%

7,452

59

3.17

%

Cash and cash equivalents

70,041

246

1.40

%

70,983

129

0.73

%

Total interest-earning assets

5,770,070

49,281

3.42

%

5,111,903

40,396

3.16

%

Noninterest-earning assets (3)

78,681

60,283

Total assets

$

5,848,751

$

5,172,186

Interest-Bearing Liabilities

Transaction accounts (4)

$

224,674

$

407

0.72

%

$

205,712

$

350

0.68

%

Money market demand accounts

1,507,614

3,314

0.88

%

1,545,433

2,919

0.76

%

Time deposits

2,274,818

8,211

1.44

%

1,716,304

5,045

1.18

%

Total deposits

4,007,106

11,932

1.19

%

3,467,449

8,314

0.96

%

FHLB advances

1,070,087

4,820

1.80

%

1,084,904

3,275

1.21

%

Senior debt

94,173

1,577

6.70

%

94,037

1,577

6.71

%

Junior subordinated debentures

61,857

487

3.15

%

61,857

380

2.46

%

Total interest-bearing liabilities

5,233,223

18,816

1.44

%

4,708,247

13,546

1.15

%

Noninterest-bearing liabilities

58,867

54,488

Total stockholders' equity

556,661

409,451

Total liabilities and stockholders' equity

$

5,848,751

$

5,172,186

Net interest spread (5)

1.98

%

2.01

%

Net interest income/margin (6)

$

30,465

2.11

%

$

26,850

2.10

%

(1) Loan balance includes portfolio real estate loans, real estate loans held for sale and $100 thousand or less in non-mortgage loans. Non-accrual loans are included in total loan balances. No adjustment has been made for these loans in the calculation of yields. Interest income on loans includes amortization of deferred loan fees, net of deferred loan costs. Net deferred loan cost amortization totals $2.3 million and $2.2 million for the three months ended March 31, 2018 and 2017, respectively.(2) Securities held to maturity include obligations of states and political subdivisions of $281 thousand and $298 thousand as of March 31, 2018 and 2017, respectively. Yields are not calculated on a tax equivalent basis.(3) Noninterest earning assets includes the allowance for loan losses.(4) Transaction accounts include both interest and non-interest bearing deposits.(5) Net interest spread is the average yield on total interest-earning assets minus the average rate on total interest-bearing liabilities.(6) Net interest margin is net interest income divided by total interest-earning assets.

NON-GAAP RECONCILIATION (UNAUDITED)

(Dollars in thousands except per share data)

For the Three Months Ended

March 31, 2018

March 31, 2017

December 31, 2017

Pre-tax, pre-provision net earnings

Income before taxes

$

15,277

$

12,720

$

14,577

Plus: Provision for loan losses

1,500

309

1,250

Pre-tax, pre-provision net earnings

$

16,777

$

13,029

$

15,827

Efficiency Ratio

Noninterest expense (numerator)

$

14,713

$

14,703

$

13,221

Net interest income

30,465

26,850

27,554

Noninterest income

1,025

882

1,494

Operating revenue (denominator)

$

31,490

$

27,732

$

29,048

Efficiency ratio

46.72

%

53.02

%

45.51

%

Return on Average Tangible Equity

Annualized net income (numerator)

$

44,408

$

49,180

$

81,684

Average stockholders' equity

$

556,661

$

409,451

$

454,635

Less: Average goodwill

(3,297

)

(3,297

)

(3,297

)

Average tangible stockholders' equity (denominator)

$

553,364

$

406,154

$

451,338

Return on Average Tangible Equity

8.03

%

12.11

%

18.10

%

Pro Forma Net Income

Income before provision for income taxes

$

15,277

$

12,720

$

14,577

Pro forma provision for income taxes (1)

4,175

5,342

6,122

Pro forma net income

$

11,102

$

7,378

$

8,455

Pro Forma Ratios

Pro forma net income (numerator)

$

11,102

$

7,378

$

8,455

Weighted average common shares outstanding - diluted (denominator)

56,755,154

42,000,000

45,831,743

Pro forma diluted earnings per share

$

0.20

$

0.18

$

0.18

Annualized pro forma net income (numerator)

$

44,408

$

29,510

$

33,819

Average assets (denominator)

$

5,848,751

$

5,172,186

$

5,461,226

Pro forma return on average assets

0.76

%

0.57

%

0.62

%

Average stockholders' equity (denominator)

$

556,661

$

409,451

$

454,635

Pro forma return on average stockholders' equity

7.98

%

7.21

%

7.44

%

Average tangible stockholders' equity (denominator)

$

553,364

$

406,154

$

451,338

Pro forma return on average stockholders' equity

8.03

%

7.27

%

7.49

%

(1) Prior to January 1, 2018, we calculate our pro forma net income, earnings per share, return on average assets, return on average equity and return on average tangible equity by adding back our franchise S Corporation tax to net income, and using a combined C Corporation effective tax rate for Federal and California income taxes of 42.0%. This calculation reflects only the change in our status as an S Corporation and does not give effect to any other transaction. For the three months ended March 31, 2018, our actual provision for income taxes is used for comparative purposes.

2 Forward - Looking Statement This communication contains a number of forward - looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 . These forward - looking statements reflect our current views with respect to, among other things, future events and our results of operations, financial condition and financial performance . All statements contained in this communication that are not clearly historical in nature are forward - looking, and the words such as "anticipate," "believe," “continue,” "could," "estimate," "expect," “impact,” "intend," "seek," "may," "outlook," "plan," "potential," "predict," "project," "should," "will," "would" and similar terms and phrases are generally intended to identify forward - looking statements . These forward - looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain
and beyond our control . Accordingly, we caution you that any such forward - looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict . Although we believe that the expectations reflected in these forward - looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward - looking statements . Such factors include, without limitation, the “Risk Factors” referenced in our Registration Statement on Form S - 1 filed with the Securities and Exchange Commission (“SEC”) . The risks and uncertainties listed from time to time in our reports and documents filed with the SEC, and the following factors : business and economic conditions generally and in the financial services industry, nationally and within our current and future geographic market areas ; economic, market, operational, liquidity, credit and interest rate risks associated with our business ; the occurrence of significant natural or man - made disasters , including fires, earthquakes, and terrorist acts ; our management of risks inherent in our real estate loan portfolio, and the risk of a prolonged downturn in the real estate market ; our ability to achieve organic loan and deposit growth and the composition of such growth ; the fiscal position of the U . S federal government and the soundness of other financial institutions ; changes in consumer spending and savings habits ; technological and social media changes ; the laws and regulations applicable to our business ; increased competition in the financial services industry ; changes in the level of our nonperforming assets and charge - offs ; our involvement from time to time in legal proceedings and examination and remedial actions by regulators ; the composition of our management team and our ability to attract and retain key personnel ; material weaknesses in our internal control over financial reporting ; systems failures or interruptions involving our information technology and telecommunications systems ; and potential exposure to fraud, negligence, computer theft and cyber - crime . The Company can give no assurance that any goal or expectation set forth in forward - looking statements can be achieved and readers are cautioned not to place undue reliance on such statements . These forward - looking statements are made as of the date of this communication, and the Company does not intend, and assumes no obligation, to update any forward - looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events or circumstances, except as required by law .

3 Use of Non - GAAP Financial Measures This investor presentation contains certain financial measures that are not measures recognized under U . S . generally accepted accounting principles (GAAP) and therefore are considered non - GAAP financial measures . The Company’s management uses these non - GAAP financial measures in their analysis of the Company’s performance, financial condition and the efficiency of its operations . Management believes that these non - GAAP financial measures provide a greater understanding of ongoing operations and enhance comparability of results with prior periods as well as demonstrate the effects of significant gains and changes in the current period . The Company’s management also believes that investors find these non - GAAP financial measures useful as they assist investors in understanding our underlying operations performance and the analysis of ongoing operating trends . However, the non - GAAP financial measures discussed herein should not be considered in isolation or as a substitute for the most directly comparable or other financial measures calculated in accordance with GAAP . Moreover, the manner in which we calculate the non - GAAP financial measures discussed herein may differ from that of other companies reporting measures with similar names . You should understand how such other banking organizations calculate their financial measures similar or with names similar to the non - GAAP financial measures we have discussed herein when comparing such non - GAAP financial measures . Below is a listing of the non - GAAP financial measures used in this investor presentation . • Pro forma net income, return on average assets, return on average equity and per share amounts are calculated by adding back our franchise S Corporation tax to net income, and using a combined C Corporation effective tax rate for Federal and California income taxes of 42 . 0 % . This calculation reflects only the changes in our status as an S Corporation and does not give effect to any other transaction . Efficiency ratio is defined as noninterest expenses divided by operating revenue, which is equal to net interest income plus noninterest income . • Tangible book value and tangible stockholders’ equity to tangible assets are non - GAAP measures that exclude the impact of goodwill and are used by the Company’s management to evaluate capital adequacy . Because intangible assets such as goodwill vary extensively from company to company, we believe that the presentation of these non - GAAP financial measures allows investors to more easily compare the Company’s capital position to other companies . A reconciliation to these non - GAAP financial measures to the most directly comparable GAAP measures are provided in the appendix to this investor presentation .

4 2017: Q3 - Completed $626 million MFR securitization; Q4 – Closed IPO at $10.75 per share & raised $138 million net proceeds or $98 million after special dividend Luther Burbank’s More Than 34 - Year History Note: Branch deposits as of 03/31/2018 1983: Luther Burbank S&LA was chartered in Santa Rosa, CA; an initial $2 million is the only equity raise, prior to our recent IPO, in our 34 - year history 1996: Completed acquisition of New Horizon S&LA, our only acquisition 2000: Converted to a federal savings association and changed our name to Luther Burbank Savings 2006: Issued $61.9 million in notes related to Trust Preferred Securities 2014: Issued $95 million in senior notes with a 6.50% fixed coupon to refinance the notes issued between 2009 and 2011 2016: Converted to a state - chartered commercial bank (OCC to FDIC) 2009 - 2011: Issued $62.7 million in senior notes with a 9.875% fixed coupon to friends and family 1996 - 2006: Migration to apartment lending; expanded products to include jumbo single - family lending 1990’s 1980’s 2000’s 2010’s 1983: Opened Santa Rosa Total Deposits: $1.2bn 1996: Opened San Rafael Total Deposits: $523mm 2015: Opened Long Beach Total Deposits: $153mm 2007: Opened Encino Total Deposits: $397mm 2010: Opened Beverly Hills Total Deposits: $343mm 2000: Opened Los Altos Total Deposits: $298mm 2008: Opened Toluca Lake Total Deposits: $237mm 2009: Opened Pasadena Total Deposits: $258mm 2012: Opened San Jose Total Deposits: $138mm 1983 - 1989: Specialty CRE lender including land, C&D, joint ventures and commercial 2018: FDIC Approved Bellevue, WA Opening ETA: June 2018

6 History of Profitability Well - Positioned in Strategic Markets Demonstrated Organic Growth Engine Strong Management Team and Robust Infrastructure Strong Asset Quality Efficient Operations Key Highlights Note: Financial data as of or for the three months ended 03/31/2018. See non - GAAP reconciliation in Appendix hereto. 4 3 2 1 6 5 » Recorded consecutive quarterly profits since our second quarter of operations » Survived and prospered through numerous economic cycles during our more than 34 - year history » West Coast gateway cities in supply - constrained markets with strong job growth and limited affordable housing » Achieve deeper penetration of our lending and deposit gathering operations in our attractive West Coast markets » Expand into contiguous markets on the West Coast to complete our Seattle to San Diego footprint » Multifamily: professional real estate investors focused on investing in stable, cash - flowing assets » Single Family: primary residence, second home or investment property » Retail Deposits: strong base built on a high level of service, competitive rates and our reputation for strength and security » Led by President & CEO John Biggs (30+ years of banking experience) » Invested heavily in people and infrastructure over the last four years » Our most important focus » Strict, quality oriented underwriting and credit monitoring processes » 0.12% NPAs / Total Assets » Maintain a small network of large branches ($390 million avg. branch size) » 46.7% efficiency ratio, 1.01% noninterest expense / average assets and 267 FTEs 1. History of Profitability 2. Well - Positioned in Strategic Markets 3. Demonstrated Organic Growth Engine 4. Strong Management Team and Robust Infrastructure 5. Strong Asset Quality 6. Efficient Operations

7 Top Multifamily Lenders in the United States Source: SNL Financial. (1) Represents delinquent multifamily loans as a percentage of total multifamily loans. Delinquent loans include 30+ days past due and nona ccr ual loans. (2) Includes all U.S. commercial banks, savings banks and savings and loan associations. Top 25 Banks and Thrifts by Multifamily Loans

11 Loan Portfolio (1) As of or for the three months ended 03/31/2018. Historical Loan Growth 3.61% yield on loans; 3.83% weighted average coupon (1) Loan Portfolio Composition Multifamily Loans by Lending Area Single - Family Loans by Lending Area

12 Asset Quality » Risk management is a core competency of our business » Extensive expertise among our lending and credit administration staff and executive officers » Credit decisions are made efficiently and consistent with our underwriting standards » Continuous evaluation of risk & return » Strict separation between business development and credit decisions » Vigilant response to adverse economic conditions and specific problem credits » Strict, quality oriented underwriting and credit monitoring processes » 03/31/2018 NPAs / Total Assets of 0.12%; NPLs / Total Loans of 0.13% » Decrease in NPAs and loans 90+ days past due to total assets over each of the three years ended December 31, 2016 » Only one foreclosure in the past three years Culture Approach Results (1) Excludes performing troubled debt restructurings. Nonperforming Assets (1) / Total Assets

13 LOAN ORIGINATION VOLUME AND RATES Pipeline: • Total loan pipeline at March 31, 2018 is $375.7 million ($260.1 million CRE at 4.541% WAC & $ 148.3 million SFR at 4.89% WAC.) A portion of our pipeline will ultimately fallout/ not fund and loans without rate locks are subject to ongoing rate increases/ decreas es.

17 Deposit Growth (1) Business/online includes $25.6 million of brokered/ wholesale funds, sourced by the unit. (2) In the first quarter of 2018, we transferred $19 million of zero interest accounts from Consumer to Business /Online Banking for purposes of reporting and management. All prior periods above have incorporated the same product reclassification for comparative purposes. Quarterly Trend $60.5MM $182.2MM $87.8MM $162.8MM

18 Business / Online Composition (1) Represents brokered funds sourced by Business Banking. Total Bank brokered deposits at March 31, 2018 are $295.9 million or 7. 19% of total deposits. By Vertical 1.572% 1.572% 1.220% 1.082% 0.830% December 31, 2017 March 31, 2018 Total Business/Online Accounts at 12/31/17 are $256.3 million or 6.49% of total deposits. Total Business/Online Accounts at 3/31/18 are $355.6 million or 8.64% of total deposits.

20 Interest Rate Risk Analysis On a quarterly basis, the Company measures and reports NII at Risk to isolate the change in income related solely to interest earning assets and interest - bearing liabilities. It models instantaneous parallel shifts in market interest rates, implied by the forward yield curve over the next one year period. NII Impact EVE Impact

21 Deposits - Cost of Funds Comparison

22 Liquidity Management Other Borrowings Securities Portfolio

23 Executive Management John G . Biggs . Mr . Biggs serves as our President and Chief Executive Officer . He leads the Executive Committee and is a member of the Bank’s board of directors . During his 30 - plus year tenure with the Bank, Mr . Biggs has held the positions of Chief Financial Officer and Chief Operating Officer, before assuming his current role in September 2007 . Since becoming President and Chief Executive Officer, Mr . Biggs has spearheaded the initiatives that have seen our total assets increase from $ 2 . 7 billion at December 31 , 2007 to $ 6 . 0 billion at March 31 , 2018 , equity increase from $ 182 . 4 million to $ 553 . 8 million over that period, expansion of the branch network in Northern and Southern California from three branches to nine, establishment and expansion of our headquarters infrastructure in Santa Rosa and Manhattan Beach, and our entry into the Seattle market, in which we have over $ 627 . 6 million in loans as of March 31 , 2018 . A Certified Public Accountant (inactive), Mr . Biggs previously served as Vice President of Finance and Controller for Columbus Marin Savings & Loan Association and as a public accountant specializing in auditing broker/dealers for the firms of Arthur Andersen, San Francisco, and KPMG LLP, Los Angeles . Mr . Biggs graduated summa cum laude in Accounting from Woodbury University . John A . Cardamone . Mr . Cardamone joined the Bank as Chief Credit Officer in 2014 . He oversees the Bank’s credit and special assets activities as well as loan operations ; he is also a member of the Bank’s Executive Committee . Prior to joining the Bank, Mr . Cardamone served as Senior Vice President & Divisional Credit Manager – Commercial Real Estate at Bank of the West from 2008 until joining the Bank, Chief Credit Officer at GreenPoint Mortgage, Senior Vice President – Global Risk Management at GE Capital’s Mortgage Insurance Unit and Managing Director and Chief Credit Officer at the Federal Home Loan Bank of San Francisco . Mr . Cardamone holds an M . B . A . in Finance from The Wharton School at the University of Pennsylvania, an M . B . A . in Management from St . Mary’s College and a B . B . A . in Business Statistics from Temple University . Tammy Mahoney . Ms . Mahoney joined the Bank as Chief Compliance Officer in early 2016 and was appointed Chief Risk Officer later that year . In her role, Ms . Mahoney oversees the Bank’s compliance, internal audit and risk management functions, including information security and project management ; she is also a member of its Executive Committee . Prior to joining the Bank, Ms . Mahoney served as Senior Vice President of Enterprise Risk and Compliance at Opus Bank from August 2011 to December 2015 ; as Director, Risk Advisory Services at KPMG from June 1995 to August 2004 ; and as Associate National Bank Examiner with the Office of the Comptroller of the Currency . A Certified Regulatory Compliance Manager and Certified Internal Auditor, Ms . Mahoney holds a B . S . in Business Administration - Finance from San Diego State University .

24 Executive Management Continued Liana Prieto . Ms . Prieto joined as General Counsel of the Company and Bank in 2014 . In this role she is responsible for leading a team of legal, human resources, Bank Secrecy Act, and third party risk management professionals ; she is also a member of the Bank’s Executive Committee . Prior to joining us, Ms . Prieto served as Associate and then Counsel at Buckley Sandler LLP from 2009 to 2014 , and as a trial attorney in the Enforcement & Compliance Division of the Office of the Comptroller of the Currency . In addition to her role at the Company and Bank, Ms . Prieto serves as Vice Chair of the Enforcement, Insider Liability and Troubled Banks Subcommittee of the American Bar Association’s Business Law Section . She also serves on the American Association of Bank Directors’ Board of Advisors and on their General Counsel and Corporate Secretary Committee . Ms . Prieto holds a J . D . from Fordham Law School and a B . A . from Georgetown University . Laura Tarantino . Ms . Tarantino currently serves as Executive Vice President and Chief Financial Officer of the Company and Bank, a position she has held since 2006 . In this role, she oversees all aspects of financial reporting including strategic planning, asset/liability management, taxation and regulatory filings ; she is also a member of the Bank’s Executive Committee . Ms . Tarantino has over 25 years of experience with the Company and Bank, having joined as Controller in 1992 . She previously served as Audit Manager for KPMG LLP, San Francisco specializing in the financial services industry . In addition to her role at the Company and Bank, Ms . Tarantino has served as an Audit Committee member for the Santa Rosa Council on Aging since 2012 . Ms . Tarantino is a California Chartered CPA (inactive) and earned a B . S . in Business Administration – Finance & Accounting with summa cum laude honors from San Francisco State University . Robert Armstrong, III . Mr . Armstrong currently serves as Senior Vice President and Director of Business and Online Banking, a position he has held since joining the Bank in January 2016 . Mr . Armstrong is responsible for expanding the Bank’s deposit offerings and creating greater access to its products and services, including deposit generation across commercial and consumer online banking platforms, as well as business banking activities . Prior to joining us, Mr . Armstrong served as Senior Vice President of Business Banking at BofI Federal Bank from October 2013 to December 2015 and a Senior Partner at Cappetta Capital from 2010 to 2013 . Mr . Armstrong’s background also includes positions as CEO/President of San Diego Private Bank, Market President at US Bank and Managing Director at Bank of America . Mr . Armstrong holds a B . S . in Economics from the University of California, Los Angeles .

25 Board of Directors John C . Erickson . Mr . Erickson has more than 30 years of financial services experience . Most recently, he served as President, Consumer Banking and President, California, for CIT Group, Inc . ( 2016 ) . Until 2014 , he served for over 30 years at Union Bank, N . A .. He held a number of senior roles across the firm, culminating in two vice chairman positions (Chief Risk Officer and Chief Corporate and Banking Officer) . As Chief Corporate Banking Officer, he oversaw commercial banking, real estate, global treasury management, wealth management and global capital markets . He was a director of Zions Bancorporation (NASDAQ : ZION) from 2014 to 2016 , and chair of that board’s risk committee, as well as a member of the audit committee . We believe Mr . Erickson’s extensive banking experience, leadership and board experience qualify him to serve on our board of directors . Jack Krouskup . Mr . Krouskup , a certified public accountant (inactive), has more than 35 years’ experience serving customers in a variety of industries . At Deloitte, LLP, or Deloitte, he served as partner - in - charge of the company’s Northern California financial services practice and also served on Deloitte’s financial services advisory committee . Mr . Krouskup has years of boardroom experience representing Deloitte with numerous global and highly complex organizations . Consequently, he has an extensive corporate governance background and deep familiarity with board and audit committee best practices . Mr . Krouskup retired from Deloitte in 2011 . He currently serves on the board of directors of Verity Health System and on the Board of Trustees of the University of California, Santa Barbara, Alumni Association board of directors . We believe Mr . Krouskup’s extensive experience as an auditor enhances the skill set of our board . Mr . Krouskup qualifies as an ‘‘audit committee financial expert’’ as defined in SEC rules, and the financial sophistication requirements of NASDAQ’s listing requirements . Anita Gentle Newcomb . Ms . Newcomb’s experience spans over three decades in the financial services industry as a commercial banker, investment banker, and strategic consultant . She has advised a range of banks and financial services companies on a wide range of corporate development initiatives from strategic planning, consumer and business banking strategy, and corporate governance best practices, to mutual conversions and valuing and structuring acquisitions . Ms . Newcomb is president of A . G . Newcomb & Co . , a financial services consultancy . She also served on the board of the Federal Reserve Bank of Richmond – Baltimore Branch from 2010 through 2015 . Ms . Newcomb is a member of the Advisory Board of the American Association of Bank Directors’ Institute for Bank Director Education . She is also a certified public accountant (inactive) . We believe Ms . Newcomb’s broad financial services consulting and strategic planning expertise bring a valuable perspective to our board and qualifies her to serve on our board of directors .

26 Board of Directors Continued Bradley M . Shuster . Mr . Shuster currently serves as Chairman of the board of directors and Chief Executive Officer of NMI Holdings, Inc . and its principal subsidiary, National Mortgage Insurance Corporation, positions he has held since 2012 . From 2008 to 2011 , Mr . Shuster has held various consulting positions assisting private investors with evaluating opportunities in the insurance industry . Mr . Shuster was an executive of The PMI Group, Inc . , or PMI, from 1995 to 2008 , where he served as president of International and Strategic Investments and chief executive officer of PMI Capital Corporation . Prior to that, he served as PMI’s executive vice president of Corporate Development and senior vice president, treasurer and chief investment officer . Before joining PMI in 1995 , Mr . Shuster was a partner at Deloitte, where he served as partner - in - charge of Deloitte’s Northern California Insurance Practice and Mortgage Banking Practice . He is a member of the board of directors of McGrath Rentcorp (NASDAQ : MRGC), and serves as a member of its audit and governance committees . We believe Mr . Shuster’s substantial experience in leadership and management of a public company in the mortgage sector qualifies him to serve on our board of directors . Victor S . Trione . Mr . Trione serves as Chairman of the board of directors Luther Burbank Savings, a position he has held since founding Luther Burbank Savings and Loan Association in 1983 and of the Company . In addition to serving as Chairman of the Company and Bank, Mr . Trione is President of Vimark , Inc . , a real estate development and vineyard management company, and co - proprietor of Trione Winery . Mr . Trione serves as Director and Chairman of the Executive Committee – Empire College ; sits on the Advisory Board – Stanford Institute for Economic Policy Research ; Board of Overseers – Stanford University’s Hoover Institution ; serves as Trustee – Angela Merici and John Newman Foundation, Inc .; Trustee – U . S . Navy Memorial Foundation, Washington, D . C .; Director – Navy Supply Corps Foundation . As one of our founders, Mr . Trione brings continuity and deep historic knowledge of the Company to the board . Thomas C . Wajnert . Mr . Wajnert launched his career in 1968 with US Leasing, a NYSE - listed company . For over 40 years, Mr . Wajnert has navigated the changing currents of the equipment leasing industry and built an impressive list of accomplishments, including serving as CEO and Chairman of AT&T Capital Corporation, an international, full - service equipment leasing and commercial finance company, from 1984 to 1996 . Mr . Wajnert also has extensive public company board experience at Reynolds American as Chairman and Solera, UDR, Inc . , NYFIX, JLG Industries as a director . Mr . Wajnert also serves on the board of International Finance Group, one of the largest privately owned P&C insurance company in the U . S . For many years he served as a Trustee of Wharton’s Center for Financial Institutions . We believe Mr . Wajnert’s substantial experience in leadership of public companies, both as an executive and as a director, qualifies him to serve on our board of directors .

Appendix

28 Balance Sheet ($ in 000’s) (1) Unaudited

29 Income Statement ($ in 000’s, except per share data) (1) Unaudited (2) Tax benefit for the three months ended December 31, 2017 reflects impact of restating deferred tax asset for S - Corporation ter mination and H.R.1 as well as deductibility of certain IPO costs.

30 Non - GAAP Reconciliation ($ in 000’s, except per share data) (1) Unaudited (2) Prior to January 1, 2018, we calculate our pro forma net income, earnings per share, return on average assets, return on aver age equity and return on average tangible equity by adding back our franchise S Corporation tax to net income, and using a combined C Corporation effective tax rate for Federal and California income taxes of 42%. This calculati on reflects only the change in our status as an S Corporation and does not give effect to any other transaction. For the three months ended March 31, 2018, our actual provision for income taxes is used for comparative purpos es.